Businesses earning over Rs. 100,000 daily must register for VAT and SSCL from July 1st

By Mangala Pavithrani

Colombo, June 22 (Daily Mirror) - Nuwara Eliya District Senior Deputy Commissioner of Inland Revenue E.D. Karunaratne said that all service providers and businesses with a daily income exceeding Rs. 100,000 must register for Value Added Tax (VAT) and the Social Security Contribution Levy (SSCL) from July 1st.

Speaking at a special awareness workshop held for business owners and service providers in the Nuwara Eliya District, he said that the taxable turnover threshold, which was previously Rs. 60 million per year, has been reduced to Rs. 36 million per year.

Accordingly, businesses engaged in services, manufacturing, wholesale trade and retail trade with an annual turnover exceeding Rs. 36 million, or approximately Rs. 100,000 per day, are required to register for VAT and SSCL without delay.

Karunaratne said that registration can be completed online through the Inland Revenue Department’s official website or by visiting any Inland Revenue office islandwide.

"All necessary facilities have been provided to assist taxpayers with the registration process," he added.

He highlighted that the revision of tax thresholds was introduced to strengthen state revenue due to the country’s low level of direct tax income.

Karunaratne also emphasided that businesses only collect these taxes from customers and remit them to the government, making it their responsibility to ensure proper registration and compliance.